AMERICAS CARMART INC (CRMT) SEC Filing 10-Q Quarterly report for the period ending Wednesday, October 31, 2018

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EXHIBIT 99.1

America's Car-Mart Reports Diluted Earnings per Share of $1.58 on Revenues of $167 Million

BENTONVILLE, Ark., Nov. 15, 2018 (GLOBE NEWSWIRE) -- America’s Car-Mart, Inc. (NASDAQ: CRMT) today announced its operating results for the second quarter of fiscal year 2019.


Highlights of second quarter operating results:

  • Net earnings of $11.3 million – $1.58 per diluted share vs. net earnings of $6.0 million – $.79 per diluted share for prior year quarter
  • Income tax benefit related to share-based compensation of $543,000 ($.08 per diluted share) compared to $612,000 ($.08 per diluted share) for the prior year quarter
  • Revenues of $167 million compared to $149 million for the prior year quarter, current quarter includes a $2.1 million increase in interest income and same store revenue increase of 11%
  • Increased sales volume productivity with 29.7 retail units sold per store per month, up from 28.4 for the prior year quarter  
  • Average retail sales price increased $612 to $11,030 or 5.9% from the prior year quarter
  • Gross profit margin percentage decreased to 41.7% from 42.0% for the prior year quarter
  • Collections as a percentage of average finance receivables increased to 13.0% from 12.2% for the prior year quarter.  The weighted average contract term decreased to 32.1 months from 32.5 from the prior year quarter and decreased from 32.4 from the first quarter of 2019
  • Net Charge-offs as a percent of average finance receivables decreased to 6.6% from 7.5% for the prior year quarter
  • Accounts over 30 days past due decreased to 3.4% from 4.1% at October 31, 2017
  • Average percentage of finance receivables current increased to 81% from 80% at October 31, 2017
  • Provision for credit losses of 26.3% of sales vs. 29.7% for prior year quarter  
  • Selling, general and administrative expenses at 17.9% of sales vs. 18.2% for prior year quarter
  • Active accounts base over 74,000, an increase of over 3,000 from April 30, 2018
  • Debt to equity of 67.5% and debt to finance receivables of 30.8%
  • Strong cash flows supporting the $15 million increase in finance receivables, $1.7 million increase in inventory, $852,000 in net capital expenditures and $6.5 million in common stock repurchases (89,656 shares) with a $9.7 million increase in total debt

Highlights of six-month operating results:

  • Net income of $22.1 million $3.11 per diluted share vs. net income of $13.0 million $1.69 per diluted share for prior year period
  • Income tax benefit related to share-based compensation of $1.5 million ($.21 per diluted share) compared to $784,000 ($.10 per diluted share) for the prior year quarter
  • Revenues of $331 million compared to $296 million for the prior year period, current period includes a $3.8 million increase in interest income and same store revenue increase of 11.6%
  • Retail unit sales increase of 6% to 25,200 from 23,769 for the prior year period with improved productivity at 29.8 retail units sold per store per month, up from 28.3 for the prior year period
  • Net Charge-offs as a percent of average finance receivables of 13.0%, down from 13.8% for prior year period
  • Provision for credit losses of 26.2% of sales vs. 28.2% of sales for prior year period 
  • Strong cash flows supporting the $34.4 million increase in finance receivables, $5.6 million increase in inventory, $1.5 million in net capital expenditures and $13.9 million in common stock repurchases (205,655 shares) with a $12.4 million increase in total debt

“We are pleased to report another solid quarter and are proud of the hard work, dedication, and commitment of our associates as we help customers succeed. Car-Mart is a vitally important part of the communities we serve, and we now have over 74,000 customers, up about 4,500 in the last twelve months. We will always strive to continually improve our service levels, and we are excited about our future and our ability to grow the business in a healthy manner. There is real purpose in our work. The market we serve is quite large, and it’s up to us to grow our customer count and at the same time continue to improve operationally.  We have spent years building an infrastructure to support a much larger business, with more recent investments directed at the General Manager Recruitment, Training and Advancement program as well as significant efforts to improve our inventory management processes,” said Jeff Williams, President and Chief Executive Officer.  “We attribute the improvements in our operating metrics to these investments, together with our total commitment to the company’s ‘Operations Non-Negotiables’ in our daily work. Our focus on basic blocking and tackling is allowing us to move the business forward in a positive manner.”

“During the quarter, we opened three new dealerships. These dealerships are in Fayetteville, Arkansas, Bixby, Oklahoma and Montgomery, Alabama. Additionally, we have three new lot openings in process. These dealerships will be in Conway, Arkansas, Bryant, Arkansas and Chattanooga, Tennessee,” said Mr. Williams. “All of these dealerships will be managed by some of our top-performing general managers as we expand the number of customers served by these managers to leverage their talents. We are excited about the direction our company is moving, and we are committed to getting better.”

“It is encouraging to see the continued improvements in our top line revenue and credit loss results.  Our associates’ commitment to customer service is showing up in our sales volume productivity, which was up 4.6% compared to the prior year quarter, and charge-offs as a percentage of average receivables was down to 6.6%.  Collections as a percentage of average receivables increased to 13% for the quarter,” said Vickie Judy, Chief Financial Officer.  “Also, it is good to see some leveraging in our selling, general and administrative expenses as our investments are paying off in supporting our increased revenues.”  

“We repurchased 89,656 shares of our common stock (1.3% of our outstanding shares at July 31, 2018) during the quarter at an average price of $72.44 for a total of $6.5 million. Since February 2010 we have repurchased 6.0 million shares (51% of our outstanding shares at January 31, 2010) at an average price of approximately $35. We plan to continue to repurchase shares opportunistically as we move forward.  During the first six months of the fiscal year, we have added over $34.4 million in receivables, repurchased $13.9 million of our common stock, funded $1.5 million in net capital expenditures, and increased inventory by $5.6 million to support higher sales levels with only a $12.4 million increase in debt. Our balance sheet is very strong with a debt to finance receivables ratio of 30.8%,” added Ms. Judy. “We will continue to focus on strong cash-on-cash returns while being mindful of the continuing infrastructure investment needs in the key areas of the business.”  

Conference Call

Management will be holding a conference call on Friday, November 16, 2018 at 11:00 a.m. Eastern Time to discuss second quarter results.  A live audio of the conference call will be accessible to the public by calling (877) 776-4031.  International callers dial (631) 291-4132.  Callers should dial in approximately 10 minutes before the call begins.  A conference call replay will be available two hours following the call for thirty days and can be accessed by calling (855) 859-2056 (domestic) or (404) 537-3406 (international), conference call ID #1085829.

About America's Car-Mart

America’s Car-Mart, Inc. (the “Company”) operates 143 automotive dealerships in eleven states and is one of the largest publicly held automotive retailers in the United States focused exclusively on the “Integrated Auto Sales and Finance” segment of the used car market.  The Company emphasizes superior customer service and the building of strong personal relationships with its customers. The Company operates its dealerships primarily in small cities throughout the South-Central United States selling quality used vehicles and providing financing for substantially all of its customers.  For more information, including investor presentations, on America’s Car-Mart, please visit our website at www.car-mart.com.

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.  These forward-looking statements address the Company’s future objectives, plans and goals, as well as the Company’s intent, beliefs and current expectations regarding future operating performance and can generally be identified by words such as “may,” “will,” “should,” “could, “believe,” “expect,” “anticipate,” “intend,” “plan,” “foresee,” and other similar words or phrases.  Specific events addressed by these forward-looking statements include, but are not limited to:

  • new dealership openings;
  • performance of new dealerships;
  • same store revenue growth;
  • future overall revenue growth;
  • the Company’s collection results, including but not limited to collections during income tax refund periods;
  • repurchases of the Company’s common stock; and
  • the Company’s business and growth strategies and plans.

These forward-looking statements are based on the Company’s current estimates and assumptions and involve various risks and uncertainties.  As a result, you are cautioned that these forward-looking statements are not guarantees of future performance, and that actual results could differ materially from those projected in these forward-looking statements.  Factors that may cause actual results to differ materially from the Company’s projections include, but are not limited to:

  • the availability of credit facilities to support the Company’s business;
  • the Company’s ability to underwrite and collect its accounts effectively, including but not limited to collections during income tax refund periods;
  • competition;
  • dependence on existing management;
  • availability of quality vehicles at prices that will be affordable to customers;
  • changes in financing laws or regulations; and
  • general economic conditions in the markets in which the Company operates, including but not limited to fluctuations in gas prices, grocery prices and employment levels.

Additionally, risks and uncertainties that may affect future results include those described from time to time in the Company’s SEC filings. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.  You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made.

____________________________
Contacts: Jeffrey A. Williams, President and CEO (479) 418-8021 or Vickie D. Judy, CFO (479) 418-8081


America's Car-Mart, Inc.
Consolidated Results of Operations
(Operating Statement Dollars in Thousands)
 
  
          % Change  As a % of Sales  
       Three Months Ended  2018  Three Months Ended  
       October 31,  vs.  October 31,  
       2018   2017  2017 2018 2017
Operating Data:             
 Retail units sold    12,667     11,932    6.2 %      
 Average number of stores in operation    142     140    1.4        
 Average retail units sold per store per month    29.7     28.4    4.6        
 Average retail sales price $  11,030  $  10,418    5.9        
 Same store revenue growth  11.0%   0.6%          
 Net charge-offs as a percent of  average finance receivables 6.6%   7.5%          
 Collections as a percent of average finance receivables  13.0%   12.2%          
 Average percentage of finance receivables-current (excl. 1-2 day) 81.0%   80.1%          
 Average down-payment percentage  5.8%   5.8%          
                  
Period End Data:             
 Stores open    143     140     2.1 %      
 Accounts over 30 days past due  3.4%   4.1%          
 Finance receivables, gross $  535,842  $  492,495    8.8 %      
                  
Operating Statement:             
 Revenues:             
  Sales  $  146,411  $  130,427    12.3 % 100.0% 100.0%
  Interest income    20,760     18,691    11.1   14.2  14.3 
    Total    167,171     149,118    12.1   114.2  114.3 
                  
 Costs and expenses:             
  Cost of sales    85,366     75,623    12.9   58.3  58.0 
  Selling, general and administrative    26,198     23,727    10.4   17.9  18.2 
  Provision for credit losses    38,521     38,746    (0.6)  26.3  29.7 
  Interest expense    1,981     1,324    49.6   1.4  1.0 
  Depreciation and amortization    979     1,108    (11.6)  0.7  0.8 
  Loss on disposal of property and equipment    12     57    (78.9)  -  - 
    Total    153,057     140,585    8.9   104.5  107.8 
                  
    Income before taxes    14,114     8,533     9.6  6.5 
                  
 Provision for income taxes     2,833     2,564     1.9  2.0 
                  
    Net income $  11,281  $  5,969     7.7  4.6 
                  
 Dividends on subsidiary preferred stock $  (10) $  (10)         
                  
    Net income attributable to common shareholders $  11,271  $  5,959          
                  
Earnings per share:             
 Basic  $  1.64  $  0.82          
 Diluted  $  1.58  $  0.79          
                  
                  
Weighted average number of shares used in calculation:             
 Basic     6,865,060     7,354,499          
 Diluted     7,132,217     7,555,026          


America's Car-Mart, Inc.
Consolidated Results of Operations
(Operating Statement Dollars in Thousands)
 
  
          % Change As a % of Sales
 
      Six Months Ended 2018 Six Months Ended 
      October 31, vs. October 31, 
       2018   2017  2017 2018 2017
Operating Data:             
 Retail units sold  25,200   23,769  6.0 %      
 Average number of stores in operation  141   140  0.7        
 Average retail units sold per store per month  29.8   28.3  5.3        
 Average retail sales price $11,022  $10,402  6.0        
 Same store revenue growth  11.6%   1.3%          
 Net charge-offs as a percent of  average finance receivables 13.0%   13.8%          
 Collections as a percent of average finance receivables  26.0%   24.6%          
 Average percentage of finance receivables-current (excl. 1-2 day) 81.4%   80.5%          
 Average down-payment percentage  6.0%   6.0%          
                  
Period End Data:             
 Stores open  143   140  2.1 %      
 Accounts over 30 days past due  3.4%   4.1%          
 Finance receivables, gross $535,842  $492,495  8.8 %      
                  
Operating Statement:             
 Revenues:             
  Sales
 $290,512  $258,701  12.3 % 100.0% 100.0%
  Interest income  40,674   36,835  10.4   14.0  14.2 
    Total  331,186   295,536  12.1   114.0  114.2 
                  
 Costs and expenses:             
  Cost of sales  169,534   150,829  12.4   58.4  58.3 
  Selling, general and administrative  52,580   47,592  10.5   18.1  18.4 
  Provision for credit losses  76,064   72,906  4.3   26.2  28.2 
  Interest expense  3,785   2,496  51.6   1.3  1.0 
  Depreciation and amortization  1,964   2,187  (10.2)  0.7  0.8 
  Loss on disposal of property and equipment  12   104  (88.5)  -  - 
    Total  303,939   276,114  10.1   104.6  106.7 
                  
    Income before taxes  27,247   19,422     9.4  7.5 
                  
 Provision for income taxes  5,083   6,461     1.7  2.5 
                  
    Net income $22,164  $12,961     7.6  5.0 
                  
 Dividends on subsidiary preferred stock $(20) $(20)         
                  
    Net income attributable to common shareholders $22,144  $12,941          
                  
Earnings per share:             
 Basic  $3.21  $1.74          
 Diluted  $3.11  $1.69          
                  
                  
Weighted average number of shares used in calculation:             
 Basic   6,894,547   7,451,673          
 Diluted   7,129,451   7,661,668          


America's Car-Mart, Inc.
Consolidated Balance Sheet and Other Data
(Dollars in Thousands)
         
    October 31, April 30, October 31,
    2018
 2018
 2017
         
Cash and cash equivalents $679  $1,022  $358 
Finance receivables, net $409,714  $383,617  $376,577 
Inventory  $39,255  $33,610  $31,315 
Total assets $487,396  $455,584  $444,007 
Total debt $164,789  $152,367  $137,950 
Treasury stock $218,197  $204,325  $182,112 
Total equity $244,310  $230,535  $226,910 
Shares outstanding  6,822,763   6,849,161   7,177,213 
         
         
Finance receivables:      
 Principal balance $535,842  $501,438  $492,495 
 Deferred revenue - payment protection plan (20,790)  (19,823)  (18,956)
 Deferred revenue - service contract (10,550)  (10,332)  (9,868)
 Allowance for credit losses (126,128)  (117,821)  (115,918)
         
 Finance receivables, net of allowance and deferred revenue$378,374  $353,462  $347,753 
         
         
 Allowance as % of principal balance net of deferred revenue 25.0%  25.0%  25.0%
         
         
Changes in allowance for credit losses:     
    Six months Ended  
    October 31,  
     2018   2017   
 Balance at beginning of period$117,821  $109,693   
 Provision for credit losses 76,064   72,906   
 Charge-offs, net of collateral recovered (67,757)  (66,681)  
  Balance at end of period$126,128  $115,918   
         

 


The following information was filed by AMERICAS CARMART INC on Friday, November 16, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Click a sentiment analysis snippet below from AMERICAS CARMART INC's Management Discussions to find these positive and negative remarks within their 10-Q Quarterly report:
  • 18486582_176
    Other - Other
    Although it is at least reasonably possible that events or circumstances could occur in the future that are not presently foreseen which could cause actual credit losses to be materially different from the recorded allowance for credit losses, the Company believes that it has given appropriate consideration to all relevant factors and has made reasonable assumptions in determining the allowance for credit losses.
  • 18486582_141
    Financial - Shares / Equity
    The Company expects to use cash from operations and borrowings to (i) grow its finance receivables portfolio, (ii) purchase property and equipment of approximately $3.4 million in the next 12 months in connection with refurbishing existing dealerships and adding new dealerships, (iii) repurchase shares of common stock when favorable conditions exist, and (iv) reduce debt to the extent excess cash is available.
  • 18486582_133
    Financial - Earnings
    Under the current limits, the aggregate amount of repurchases after October 25, 2017 cannot exceed the greater of: (a) $50 million, net of proceeds received from the exercise of stock options (plus any repurchases made during the first six months after October 25, 2017, in an aggregate amount up to the remaining availability under the $40 million repurchase limit in effect immediately prior to October 25, 2017, net of proceeds received from the exercise of stock options), provided that the sum of the borrowing bases combined minus the principal balances of all revolver loans after giving effect to such repurchases is equal to or greater than 20% of the sum of the borrowing bases; or (b) 75% of the consolidated net income of the Company measured on a trailing twelve month basis.
  • 18486582_102
    Financial - Income
    Historically, income from operations, as well as borrowings on the revolving credit facilities, have funded the Company?s finance receivables growth, capital asset purchases and common stock repurchases.
  • 18486582_106
    Other - Other
    Historically, most or all of this cash is used to fund finance receivables growth, capital expenditures, and common stock repurchases.
  • 18486582_103
    Financial - Income
    In the first six months of fiscal 2019, the Company funded finance receivables growth of $34.4 million, inventory growth of $5.6 million, capital expenditures of $1.5 million, and common stock repurchases of $13.9 million with income from operations and a $12.4 million increase in total debt.
  • 18486582_107
    Financial - Income
    To the extent finance receivables growth, capital expenditures and common stock repurchases exceed income from operations, generally the Company increases its borrowings under its revolving credit facilities.
  • 18486582_25
    Financial - Income
    Credit losses may be impacted by a number of factors, including the age of our dealerships, with newer and developing dealerships tending to have fewer repeat customers and management that is less experienced at making credit decisions and collecting customer accounts, competition for used vehicle financing, and macro-economic factors such as general inflation, unemployment levels and personal income levels.
  • 18486582_127
    Other - Other
    Management continues to focus on improved execution at the dealership level, specifically as related to working individually with customers to address collection issues.
  • 18486582_123
    Other - Other
    Increased competition resulting from availability of funding to the sub-prime auto industry can result in lower down payments and longer terms, which can have a negative effect on collection percentages, liquidity and credit losses.
  • 18486582_99
    Revenue - Product
    Deferred revenue increased $1.2 million at October 31, 2018 as compared to April 30, 2018, primarily resulting from increased sales of the payment protection plan product and service contracts.
  • 18486582_184
    Revenue - Product
    ASU 2014-09 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract.
  • 18486582_98
    Other - Other
    Accounts payable and accrued liabilities increased by $2.8 million during the first six months of fiscal 2019 as compared to accounts payable and accrued liabilities at April 30, 2018, related primarily to increases in inventory and cash overdrafts.
  • 18486582_3
    Revenue - Product
    Specific events addressed by these forward-looking statements include, but are not limited to: new dealership openings; performance of new dealerships; same dealership revenue growth; future revenue growth; receivables growth as related to revenue growth; gross margin percentages; interest rates; future credit losses; the Company?s collection results, including, but not limited to, collections during income tax refund periods; seasonality; compliance with tax regulations; the Company?s business and growth strategies; financing the majority of growth from profits; and having adequate liquidity to satisfy the Company?s capital needs.
  • 18486582_216
    Revenue - Product
    Therefore, the Company generally realizes a higher proportion of its revenue and operating profit during the first and fourth fiscal quarters.
  • 18486582_89
    Revenue - Product
    The following table sets forth the major balance sheet accounts of the Company as of the dates specified (in thousands): Since April 30, 2018, finance receivables have increased 6.8%, while revenues have grown 12.1% compared to the prior year period.
  • 18486582_47
    Financial - Income
    Interest income increased approximately $2.1 million for the three months ended October 31, 2018, as compared to the same period in the prior fiscal year due to the $41.1 million increase in average finance receivables and the increase in the contract interest rate from 15.0% to 16.5% at the end of May 2016.
  • 18486582_70
    Financial - Income
    Interest income increased approximately $3.8 million for the six months ended October 31, 2018, as compared to the same period in the prior fiscal year due to the $38.9 million increase in average finance receivables and the increase in the contract interest rate from 15.0% to 16.5% at the end of May 2016.
  • 18486582_104
    Financial - Cash Flow
    The following table sets forth certain summarized historical information with respect to the Company?s Condensed Consolidated Statements of Cash Flows (in thousands): The primary drivers of operating profits and cash flows include (i) top line sales (ii) interest income on finance receivables, (iii) gross margin percentages on vehicle sales, and (iv) credit losses, a significant portion of which relates to the collection of principal on finance receivables.
  • 18486582_90
    Revenue - Product
    Historically, the growth in finance receivables has been slightly higher than overall revenue growth on an annual basis due to overall term length increases partially offset by improvements in underwriting and collection procedures in an effort to reduce credit losses.
  • 18486582_162
    Other - Other
    The Company believes the most significant estimate made in the preparation of the accompanying Condensed Consolidated Financial Statements relates to the determination of its allowance for credit losses, which is discussed below.
  • 18486582_110
    Other - Other
    Finance receivables, net, increased by $26.1 million from April 30, 2018 to October 31, 2018.
  • 18486582_109
    Financial - Cash Flow
    Cash flows from operations for the six months ended October 31, 2018 compared to the same period in the prior fiscal year decreased primarily as a result of larger finance receivables originations, partially offset by (i) higher net income, (ii) higher finance receivable collections, and (iii) a higher non-cash charge for credit losses.
  • 18486582_120
    Financial - Expense
    Management expects the supply of vehicles to remain tight during the near term and to result in further modest increases in vehicle purchase costs, with strong new car sales levels in recent years helping to provide additional supply and mitigate expected cost increases.
  • 18486582_183
    Revenue - Product
    The new guidance in ASU 2014-09 is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.
  • 18486582_177
    Other - Other
    While challenging economic conditions can negatively impact credit losses, the effectiveness of the execution of internal policies and procedures within the collections area and the competitive environment on the funding side have historically had a more significant effect on collection results than macro-economic issues.
  • 18486582_57
    Financial - Expense
    In dollar terms, overall selling, general and administrative expenses increased approximately $2.5 million in the second quarter of fiscal 2019 compared to the same period of the prior fiscal year.
  • 18486582_79
    Financial - Expense
    In dollar terms, overall selling, general and administrative expenses increased approximately $5.0 million in the first six months of fiscal 2019 compared to the same period of the prior fiscal year.
  • 18486582_115
    Revenue - Product
    Decreases in the overall volume of new car sales, particularly domestic brands, lead to decreased supply in the used car market.
  • 18486582_51
    Revenue - Product
    The average retail sales price for the second quarter of fiscal 2019 was $11,030, a $612 increase over the prior year quarter.
  • 18486582_27
    Other - Other
    In an ongoing effort to reduce credit losses, improve collection levels and operate more efficiently, the Company continues to look for improvements to its business practices, including better underwriting and better collection procedures.
  • 18486582_73
    Revenue - Product
    The average retail sales price for the six months ended October 31, 2018 was $11,022, a $620 increase over the same period in the prior fiscal year.
  • 18486582_92
    Other - Other
    During the first six months of fiscal 2019, inventory increased by $5.6 million compared to inventory at April 30, 2018.
  • 18486582_101
    Financial - Earnings
    Borrowings on the Company?s revolving credit facilities fluctuate primarily based upon a number of factors including (i) net income, (ii) finance receivables changes, (iii) income taxes, (iv) capital expenditures, and (v) common stock repurchases.
  • 18486582_140
    Financial - Debt
    Furthermore, while the Company has no specific plans to issue debt or equity securities, the Company believes, if necessary, it could raise additional capital through the issuance of such securities.
  • 18486582_112
    Financial - Expense
    Because the Company bases its selling price on the purchase cost for the vehicle, increases in purchase costs result in increased selling prices.
  • 18486582_186
    Other - Other
    As a result, the guidance in ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, and interim reporting periods within those years, using one of two retrospective application methods.
  • 18486582_196
    Other - Other
    The guidance is effective for annual reporting periods beginning after December 15, 2017 and interim periods within those years.
  • 18486582_201
    Other - Other
    The guidance is effective for annual reporting periods beginning after December 15, 2017 and interim periods within those years.
  • 18486582_206
    Other - Other
    The guidance in ASU 2016-02 is effective for annual reporting periods beginning after December 15, 2018, and interim reporting periods within those years.
  • 18486582_212
    Other - Other
    ASU 2016-13 is effective for annual reporting periods beginning after December 15, 2019, and interim reporting periods within those years using a modified retrospective approach.
  • 18486582_65
    Other - Other
    The Company believes that the proper execution of its business practices remains the single most important determinant of its long-term credit loss experience.
  • 18486582_86
    Other - Other
    The Company believes that the proper execution of its business practices remains the single most important determinant of its long-term credit loss experience.
  • 18486582_17
    Revenue - Product
    Revenue increased 12.1% for the first six months of fiscal 2019 compared to the same period of fiscal 2018 due to a 10.4% increase in interest income and a 6.0% increase in the number of retail units sold.
  • 18486582_58
    Other - Other
    The majority of this increase is in the payroll and benefits area as we continue to invest in our associates as we train, develop and recruit to provide excellent customer service.
  • 18486582_16
    Revenue - Product
    Growth results from same dealership revenue growth and the addition of new dealerships.
  • 18486582_126
    Other - Other
    The Company anticipates that, despite generally positive overall economic trends, the challenges facing the Company?s customer base, coupled with the extended terms and decreased recovery rates, will contribute to credit losses remaining elevated in the near term compared to historical ranges.
  • 18486582_170
    Other - Other
    The calculation of the allowance for credit losses uses the following primary factors: The number of units repossessed or charged-off as a percentage of total units financed over specific historical periods of time from one year to five years.
  • 18486582_60
    Financial - Expense
    The Company continues to focus on controlling costs, while at the same time ensuring a solid infrastructure to ensure a high level of support for our customers.
  • 18486582_81
    Financial - Expense
    The Company continues to focus on controlling costs, while at the same time ensuring a solid infrastructure to ensure a high level of support for our customers.
  • 18486582_59
    Financial - Earnings
    This includes additional bonus and commissions related to the higher net income levels as several of our associates (especially the general managers) are compensated on net income.
  • 18486582_45
    Revenue - Product
    Consolidated Operations (Operating Statement Dollars in Thousands) Revenues increased by approximately $18.1 million, or 12.1%, for the three months ended October 31, 2018 as compared to the same period in the prior fiscal year.
  • 18486582_68
    Revenue - Product
    Revenues increased by approximately $35.7 million, or 12.1%, for the six months ended October 31, 2018 as compared to the same period in the prior fiscal year.
  • 18486582_31
    Other - Other
    Additionally, the Company places significant focus on the collection area; the Company?s training department continues to spend significant time and effort on collections improvements.
  • 18486582_150
    Financial - Income
    Car-Mart of Arkansas and Colonial do not meet the affiliation standard for filing consolidated income tax returns, and as such they file separate federal and state income tax returns.
  • 18486582_97
    Financial - Expense
    The Company incurred $2.0 million of depreciation expense, partially offset by $1.5 million in expenditures to refurbish and expand existing locations.
  • 18486582_91
    Revenue - Product
    However, during the first six months of fiscal 2019, revenues have grown faster than finance receivables due to the increasing retail price and increased sales volumes, along with increased finance receivables collections.
  • 18486582_185
    Revenue - Product
    In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, to provide entities with an additional year to implement ASU 2014-09.
  • 18486582_36
    Financial - Earnings
    The Company?s gross margin is based upon the cost of the vehicle purchased, with lower-priced vehicles typically having higher gross margin percentages, and is also affected by the percentage of wholesale sales to retail sales, which relates for the most part to repossessed vehicles sold at or near cost.
  • 18486582_124
    Other - Other
    However, in the most recent quarter competitive pressures appear to have eased modestly, which the Company believes contributed to increased traffic at our dealerships.
  • 18486582_132
    Financial - Shares / Equity
    The distribution limitations under the credit facilities allow the Company to repurchase shares of its common stock up to certain limits.
  • 18486582_41
    Other - Other
    The extent to which the Company is able to add new dealerships and implement operating initiatives is limited by the number of trained managers and support personnel the Company has at its disposal.

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Exhibit 31.2 - EXHBIIT 31.2

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Exhibit 32.1 - SECTION 1350 CERTIFICATION

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  • Form Type: Quarterly
  • Number of times amended: 0
  • Accession Number: 0001171843-18-008350
  • Submitted to the SEC: Thursday, December 6, 2018 3:40:18 PM EST
  • Accepted by the SEC: Thursday, December 6, 2018
  • Period ending: October 2018
  • Industry: Retail Auto Dealers And Gasoline Stations
Companies
 

CRMT

AMERICAS CARMART INC

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